Nathan McDonald for Sprott Money [6]
It has been speculated that western central bankers have been dishoarding their peoples hard earned gold reserves in a futile attempt to keep the price of precious metals down and to artificially prop up fiat currencies.
Although it is a horrible crime against its citizens, one needs to understand that the source of government power comes from its ability to fool its people into thinking fiat currency has real value.
Governments have done a brilliant job in doing so and have thus been able to make promise after promise to get themselves re-elected. All while leading their countries into unavoidable bankruptcy; but that’s someone else’s problem! Or so they think.
Not only is there ample evidence that western gold vaults are being depleted, but it is becoming more and more obvious that western politicians and bankers’ influence has spread to other parts of the world.
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One such country is Ukraine, which has recently reported [7], that they have sold almost all of their gold reserves. This announcement shocked people, as there was no indication as to why they intended to do this.
This has lead to widespread speculation that this was the Ukrainian price for Western aid against the Russian government and President Putin. Perhaps this is the case, or perhaps not. Regardless, this announcement has enraged the citizens of Ukraine.
A Kyiv-based court has taken action, instructing Kyiv prosecutors to file charges against the National Bank of Ukraine. Governor Valeriya Gontareva in case No. 757/33660/14 is specifically charged with “abuse of power or misuse of office under Article 364 of the Criminal Code of Ukraine”.
The plaintiff is lawyer Rostyslav Kravets, who claims that Governor Gontareva, “has intentionally committed an extremely unfavorable transaction for the gold and forex reserves of Ukraine”.
Under the Ukrainian constitution, the sale of Ukraine’s gold is seen as a criminal act, given that the central bank is in charge of maintaining its countries gold reserves. I don’t believe any sane person would believe that the sale of all but 1% of anything, would be considered maintaining, but rather liquidating.
This development has prompted Olena Shcherbakova, head of the of the monetary policy department at the Ukrainian central bank, to resign from her position. Bloomberg, who attempted to reach her by phone was told that she did not need to give a reason for her decision. Clearly, she believes that this case is not going to go well and that the wrath of the Ukrainian people is coming.
It is unseen as to what the result of these charges will bring. Yet it is undoubtedly a positive sign and shows that the Ukrainian people are awake and tired of being pawns in this global currency war. It is unfortunate that they are unlikely to ever get their gold back.
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What is most ironic is the fact that the Ukrainian government, much to the outrage of its citizens, was selling its gold reserves, while its enemy, Russia was buying gold in vast quantities and continues to do so.
Clearly this story goes much deeper than first assumed and is incredibly complex. It is a strong possibility that it was western central banks that encouraged Governor Gontareva to commit political suicide and sell her citizens hard money for fiat dollars.
Regardless of the motivation, it is clear the people of Ukraine are not going to take this lying down. They have been through enough grief and turmoil as of recently, they should be and are angered that they are being sold out by one of their own.
Perhaps, people in the West should take note of this and think long and hard about the actions of their central bankers, who clearly don’t have their citizens’ best interest at heart. Perhaps it’s time people took notice and stand up for what is right.
Nathan McDonald for Sprott Money [6]